All Forum Posts by: Jose Martinez

Hey @Kenneth E. just following up on this thread, any updates on the virtual co-wholesale 50/50 restart? Id be interested to talk more about this im looking in some virtual markets as well. 

hey guys, got my first contract signed of 2018, looking my next steps to get this sold! im a wholesaler in Houston, Tx. its in the Greater 3rd ward by UH north of Scott Street and Alabama. thanks for your feedback. Let me know of your suggestions for title companies, im leaning towards patten law firm. 

@Jason Schimer, biggest mistakes for first 5 properties was action. 

#1 first time i thought about realestate as a business and career. Was my next door neighbors house. he got divorced and needed cash bad. sold it for dirt cheap pre '08. and that house sold 3 more times twice via foreclosure and i just froze. ACTION apply the 5 second rule and just fail forward.

#2 got a contract signed and last year and i found that it had 2 personal liens and a tax lien. i figured out the tax lien and i left it to the title companies to tell me about the other 2 liens. which they had no clue. my contract expired and i lost that deal. I thought i could do it myself and i didnt use my circle of influence to help me. use your NETWORK

#3 follow up, I did a big campaign and needed a property in a certain area and lo and behold. direct mail actually works. i got a call and found a hot lead and i let them off the hook! were they motivated? yes, did they want to sell? yes. but after 3 months i stopped following up. and guess what that house sold 5 months later. FOLLOW UP+ PERSISTENCE

#4 numbers are always right, but excel is not. I was working with a wholesaler whom was selling me on a wraparound mortgage. The house was good, neighborhood good, comps not good, repairs not good but my spreadsheet said otherwise. and when i took my contractor over and my JV partner(seasoned investor) they also said not good. but i kept looking at my numbers and finally i said my numbers are right this deal is not good, guess what tho, the wholesaler found an extra 20K discount. but by then my numbers really made sense and that house was a money pit. Real Estate is pretty easy at first. leave it that way. STICK TO YOUR PLAN (NUMBERS)

#5 walked up on a pre-foreclosure and had a motivated seller, House was perfect for total rehab and addition for extra equity, huge lot for garage appt conversion. but my toolbelt wanted to do seller finance and she just wanted cash. we were apart about 15K and i just wanted to be at 65% ARV and she was at 75% ARV. i wont lie i was intimidated by the project scope. but what i failed to recognize was her pain. i did though eventually see it and when i did it was too late. by then someone else had promised her what she needed to hear. its never about the money...its always about the pain. can you relieve and help the seller with that pain. i walked in with cold hard cash when i needed to walk in with a both ears on listen mode. im not a good snake oil sales man but im learning the craft of listening. listen more than you talk, practice this with your friends and family try to keep conversations going with you saying as little as possible. SILENCE, PAUSE, LISTEN

I hope this helps, but dont be discouraged. at the end its a numbers game and some get lucky and others are born lucky. its a matter of being prepared and acting on it. luck can be good or bad what matters is if you are prepared and take action. Always be Selling and Always be Buying. 

@Syed Husain call these guys, JR Plumbing on facebook or inbox me for their info. 

Hi @Robert Johnson, great question! you are both correct and incorrect. 

Correct, a clouded title is not something you want to invest in, there too many uncertainties when it comes to it that could prevent you from either making a ROI or even further causing you to lose money and be in the RED...yikes!

Incorrect, a clouded title could provide opportunity!!$$$ that term you hear investors say "smells like money" depending how crafty you are and how good your negotiating skills are this could provide an opportunity to really come on top. you just have to determine what your tolerance is and have a plan. 

Tax sales are serious business. have you ever been to one? here is how i would approach it

1. if you havent been to a tax sale, go to one and just observe.

2. have a budget in mind and dont spend a dollar over that budget, 

3. must have cash...but dont carry cash, carry cashiers checks funds are due same day as tax sale. 

4. do your research on said property, who owns? where is it located, how does the market look around it? all these could influence where its a gem or rock and what youre prepared to offer

5. Texas is a redemption state so even if you are a winner at auction its not final until the redemption period has passed.

6. it is possible for another investor to buy the redemption rights from the owner and then just pay off the back taxes and interest. they could get that last minute steal on your property.

7. have you contacted the owner? this could provide the most financial gain, contact the owner, inform them of back taxes (dont be surprised if they didnt know) here negotiating comes in. offer your best price and then be prepared to offer the bank lien holder an offer as well. 

8. Tax sales will clear out majority of liens, very few survive so if said property makes it to the tax sale and youre the winning bid, and you make it past the redemption period, then finally then its yours. a good strategy is to win the bid and offer the buy the redemption rights from the owner, this almost ensures the property is yours.

9. make sure the property is not on the struck off list, these properties can be money pits but they could also be the biggest diamonds. Struck off list means they didnt sell at the first auction first go around with a minimum bid, so now they are being sold in hotsale status, where the highest bidder wins! 

10. good luck! and dont be discouraged, this sounds like alot of work, it is but its takes as long as watching a football game to do the research and lots of networking. find a strong circle of influence. i would attend the tax sales and chat up the folks buying, they can be pretty chatty. 

11. remember its a numbers game, not everyone makes $74,126.00 in there first deal like most bigger pockets podcasts soundoff about. chickensoup for the soul was rejected 147 times before it became a number 1 best seller selling millions of copies all over the world. all this means is be persistent and keep trying, keep falling forward and always get back up and try again.  

12. look up Seth Williams, and the landgeek they have websites and podcasts, with more info on buying land. once you buy your first tax sale come back and post it as a sucess story and next steps! 

Both are important but which one do you value the most? 

Knowing your comps or knowing your rehab number?

if you know the median sales of said "property" and know your rehab number, then your purchase and wholesale fee are more clear. 

But if you know how to run comps then you can find even more value in the purchase price? 

and for those who want to know, share a few insights on how you run your numbers.

thanks!

Are you feeling stuck? is there ONE question or ONE decision you cant wrap your mind around to decide? put a reply and see what the community has to say. 

whats the most pressing question, situation, decision that you feel stuck at? 

Im not a mentor, but i would hit up all the local REIAs and use your best elevator pitch there. it wont be easy. a good REI mentor is making several hundred dollars an hour. and they can pay 10$ for grunt work. go driving for dollars and get a list of 100 vacant/distressed properties(ugliest ones in the on a clean block). find the owner via the county and put them together in an excel spreadsheet (owner/address/last sale date)and then approach someone who you feel comfortable with. dont offer it all up at once, it has to be a fit for you too. print out business cards with a number and hand them out like crazy, talk to realtors and flippers/wholesalers via networking and email them, text them, call them a few days later to follow up and talk about your list. that is value$$ "hey mrs/mr realtor/investor, i have this list and id be glad to share it with you for a JV split 20/80 for the first 3"..."as long as i get to ride along and see how it goes" that would be a good way to build rapport and interest from a mentor that youre serious.

good luck!!